Short courses>Foreign exchange options

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Foreign exchange options - 2.5 hours

A foundation course that explains foreign exchange options.

The course provides an explanation of option terminology, the payoff profiles of trades, how these options can be used to hedge and trade and a case study in what can go wrong.

It is suitable for those working in or around financial markets who need to know more.

There are simple examples with time for questions and answers.

This course is only available in-house and is suitable for up to 12 people.

This is what is covered:

Option terminology
Underlying, expiry, premium, exercise and strike
The four basic option trades
Payoff profiles
In the money, at the money and out of the money
What is agreed in a trade
Examples of payoffs on long/short calls/puts
Hedging with foreign exchange options – advantages/disadvantages
What influences the premium cost
Combining options – using one option to pay for another
Exotic foreign exchange options
Why options make people nervous - a case study of Rogue Trading

Related Documents

Market Guides > Spot & forward foreign exchange

12th October 2009

Introduction Foreign exchange is defined as "a claim to a foreign currency payable abroad and may be funds held, bills or cheques". A foreign exchange transaction is, "a contract agreed today between two parties to trade an agreed amount of one currency for an agreed amount of another currency on a future date". When you travel you may be familiar with buying currency at the airport. Because the sums involved are small and paper money is exchanged the differences between buying and selling prices can be wide. You may also be unfortunate enough to pay a dealing fee. Banks, corporates and speculators deal in the professional market. Trades are transacted across electronic platforms and each trade can run into millions of dollars. As a consequence dealing spreads are very narrow and the money is exchanged by credits and debits to bank accounts. Let's find out about the spot and forward markets and the risks involved.

Money Markets & Foreign Exchange

Short courses>Foreign exchange & Non deliverable forwards

elearning > Spot & forward foreign exchange

Learn about the following: How the spot market works. What the spot price is. What happens when you do a deal. How the forward rate is calculated. How dealers make money. Why customers are important.

Treasury Consulting > Corporate foreign exchange risk

6th December 2009

Unexpected gains and losses from foreign exchange risk can complicate running a company. At the moment you may be selling off currency on an ad-hoc basis and it's the first time you have considered managing the exposure what can you do? Here are 11 points that may help.